Private equity has taken a near 50% stake in retirement home operator Summerset, 18 months after AMP Capital ditched plans for a $300 million sharemarket float of the business.

NBR is told that Australian firm Quadrant Private Equity has formed a joint venture company with AMP Capital and taken a 49.9% shareholding in Summerset.

AMP Capital spokeswoman Sue Ryan this afternoon confirmed the deal, which is subject to Overseas Investment Office approval.

Ms Ryan would not disclose the sale price but said AMP Capital was pleased with the transaction. Since the NZX listing didn’t work out AMP Capital was always looking for a new investor in Summerset, she says.

“We are pretty happy to get a bit of cash in and retain a long term interest in the business.”

Summerset has more than $200 million in assets and is the third largest chain in New Zealand with plans to own 20 villages by 2011.

AMP Capital paid $125 million for the company in November 2005.

In August 2007, AMP Capital had expected to raise about $300 million for 80% of Summerset in what would have been the biggest IPO since part of Vector was privatised in 2005.

The indicative price range of $1.70 to $1.90 valued Summerset at between $340 million and $380 million.

However, some analysts at the time thought AMP had wanted far too much, considering a more realistic price was more like $1.20 to $1.50, or up to $300 million for the whole company.

Based in Sydney, Quadrant has $A765 million of funds under management and has a made a broad range of private equity investments recently, including fast food chicken companies Red Rooster and Oporto, and fertility care company IVF Australia.

In 2006, the firm also took part in a $275 million leveraged buyout of Katmandu Group with Goldman Sachs JB Were in April 2006.

Quadrant managing director Chris Hadley and investment director Marcus Darville have joined the Summerset board of directors.

The only change, other than the ownership structure, is that the joint venture company will employ the management team.

A small amount of shares have been retained by key executives, including CEO Nora Barlow.

AMP Capital is a local subsidiary of Australian financial services firm AMP Ltd, and manages funds worth around $12 billion.